"Following the conference call held by BWP on Monday we have updated this initial valuation with an expectation that restoration of distribution will be longer and slower and will result in an annual rate of approximately $0.60 per unit in 2015 and $0.80 per unit in 2016. As shown in the table, we now derive a target price of $12 per unit for BWP. We note that coverage, the improved balance sheet at the expense of the equity and the distribution support a Sell rating especially when the MLP sector provides so many options for higher yields and better outlooks," said analyst Curt Launer.

"Additionally, we expect the disappointing performance to result in BWP's removal from the Alerian MLP Index (AMZI). As of December 2013, BWP comprises 1.22% of the AMZI. In terms of upside risk, the possibility that BWPs General Partner, Loews, will step in to take BWP private or sell it during the period that it will not be receiving GP distributions under the Incentive Distribution Rights," he added.

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